Sensex up 161 points in morning trade, IT stocks lead recovery

Mumbai: The BSE benchmark Sensex on Wednesday recovered over 161 points in morning trade after Tuesday’s steep fall, on the back of rally in IT, healthcare and metal sector stocks due to fresh buying by funds and retail investors.

The 30-share barometer rose 161.31 points, or 0.88 percent, to 18,395.97, supported by increased buying in beaten down bluechip stocks. The index had lost 651.47 points on Tuesday.

Similarly, the wide-based National Stock Exchange index Nifty moved up by 45.55 points, or 0.85 percent, to 5,387.00. Brokers said sentiments turned better after funds and retail investors made fresh purchases at selective stocks, available at attractive levels.

Stocks of IT companies were in good demand on expectations that strengthening dollar would improve their earnings as 60 percent of their revenues come from US and European markets.

However, stocks in the realty segment faced selling pressure after the RBI tightened norms for disbursal of home loans. DLF plunged 2.75 percent to Rs 123.90, while Indiabulls Real Estate fell by 1.97 percent to Rs 54.75.

The IT sector index was trading 1.61 percent higher at 8,053.11 points as stocks of Infosys were up by 1.98 percent to Rs 3,094, while TCS gained 1.30 percent to Rs 2,026.85.